Loss Analysis to Drive Sales Growth

What are your closed lost deals worth? The best sales leaders constantly monitor why their sellers are losing deals. Is one category going up; e.g., initiative delayed? Is another category going down; e.g., product fit? Once key insights and trends are known and understood, necessary adjustments can be made to resource allocation and coaching.

Companies, especially startups, spend a lot of money to acquire new customers. Lost deals are missed opportunities for both revenue growth and sustainability. As you will see below, even small, incremental win rate improvements can have a significant impact on revenue performance. Below is an example loss analysis from a fictitious company.

By winning back 5% of the closed lost deals, the company could add an additional $156,423 in sales to its top line. By winning back 25% of the closed lost deals, the company could add an additional $782,116 in sales to its top line. The same impact on revenue performance is also true if the company had prevented those losses in the first place.